Finance Ministers discuss energy taxes

Delegates attending the informal meeting of finance ministers in Gothenburg, Sweden, discussed a review of Directive 2003/96/EC, which would restructure the Community framework for the taxation of energy products. László Kovács, Commissioner for Taxation and Customs Union, declared at the meeting that the Commission intends to propose a CO2 tax to reduce emissions from sectors outside the EU Emission Trading Scheme.

This proposal was welcomed by a number of ministers. The harmonisation of taxation, however, is a sensitive issue for some Member States and any proposal would require unanimity. Commissioner Kovács announced that the Commission would therefore try and prepare a proposal that was acceptable to all Member States in order to reach an agreement quickly in the European Council.

Energy efficiency is a major priority for the Swedish Presidency and they have been pushing for the taxation of CO2 at EU level. The Swedes aim for a finished proposal by December 2009, however any amendments to Directive 2003/96/EC will most likely have to wait until early 2010. The proposal will, therefore, fall under the mandate of the new Commission, which might decide to delay restructuring the Community framework for the taxation of energy products.

CEMBUREAU has commented to the European Commission on the proposal to revise the Taxation of Energy Products Directive and include CO2 related taxation.